Customs Proclamation February, 2014

Transcription

1 Customs Proclamation February, 2014

2 Table of Content Article Title Page PART ONE GENERAL 9 1 Short Title 9 2 Definitions 9 3 Scope of Application 9 4 Prohibited or Restricted Imports and Exports 14 PART TWO PRINCIPLES OF CUSTOMS OPERATIONS 5 General 14 6 Risk Management 15 7 Customs Approved Treatment or Use of Goods 15 PART THREE CUSOTMS PROCEDURE CHAPTER ONE GOODS DECLARATION 8 Declarant 15 9 Forms of Goods Declaration Supporting Documents of Goods Declaration Allowing Provisional Goods Declaration Goods Subject to Goods declaration Acceptance of Goods Declaration Amendment of Declaration Cancellation of Declaration 18 CHAPTER TWO CUSTOMS TRANSIT AND TRANSHIPMENT 16 General Goods Declaration for Customs Transit Sealing and Identification of Consignments Customs Seals Formalities En Route Termination of Customs Transit Transhipment 21

3 CHAPTER THREE CUSTOMS PROCEDURES FOR CLEARANCE OF GOODS 23 Examination of Documents and Goods Placing of Identification Marks on the Goods Releases of Goods Replacement and Compensatory Goods Release of Goods for Free Circulation Pre-arrival Clearance Clearance Subsequent to Release of Goods 25 CHAPTER FOUR CUSTOMS PROCEDURE FOR TRAVELERS 30 Goods Declaration by Travelers Storage of Goods carried by Travellers Unaccompanied Baggage Non-commercial Goods and Personal Effects Transit Travellers Information Concerning the Customs Facilities Applicable to Travellers 27 CHAPTER FIVE CUSTOMS PROCEDURE FOR IMPORTATION AND EXPORTATION OF GOODS THROUGH THE POSTAL SYSTEM 36 Customs Control Duty to Report Postal Goods Declaration Delegation 28 CHAPTER SIX CUSTOMS PROCEDURE APPLICABLE TO MEANS OF TRANSPORT FOR COMMERCIAL USE AND STORS 40 Temporary Admission of Means of Transport for Commercial Use Temporary Admission of Parts and Equipments Declaration of Arrival Customs Formalities for Departure Stores on Board Arriving Aircraft or Train Supply of Stores Other Disposal of Stores 31 CHAPTER SEVEN CONSIGNMENT FOR EMERGENCY RELIEF 47 Scope of Application Customs Procedures for Clearance of Relief Consignment Exemption from Duties and Taxes 32 3

4 CHAPTER EIGHT CUSTOMS WAREHOUSE PROCEDURE 50 Warehousing of Goods Time Limit of Storage in Customs Warehouse Removal of Goods from Customs Warehouse Goods Found in Excess of Entry Operations Permitted in Customs Warehouse Goods Taken for Sample Customs Control on Customs Warehouses Transfer of Goods to Government Customs Warehouse Government Customs Warehouse Records Warehouse Fee Transfer of Ownership of Goods in Customs Warehouse Disposal of Abandoned Goods Disposal of Forfeited Goods Procedures of Sale Proceeds of Sale and Cost of Disposal 39 CHAPTER NINE CUSTOMS PROCEDURE FOR INWARD OR OUTWARD PROCESSING 65 Inward Processing Outward Processing Duties and Taxes 41 CHAPTER TEN CUSTOMS PROCEDURE FOR PROCESSING OF IMPORTED GOODS FOR HOME USE UNDER CUSTOMS CONTROL 68 Authorization to Use the Procedure Payment of Duties and Taxes Termination of the Procedure 42 CHAPTER ELEVEN CUSTOMS PROCEDURE FOR TEMPORARY IMPORTATION OR EXPORTATION AND RE-IMPORTATION OR RE-EXPORTATION OF GOODS 71 Temporary Importation Refusal of Authorization Time Limit for Temporarily Imported Goods to Stay at Home Total or Partial relief for Temporary Admission Temporary Export and Re-importation of Goods Re-exportation and Re - importation of Goods Termination of the Procedure 45

5 CHAPTER TWELVE COMPLITION OF CUSTOMS PROCEDURE THROUGH THE USE OF ELECTRONIC INFORMATION EXCHANGE SYSTEM 78 General Registration of Users Sending and Receipt of Electronics Messages Verification of Electronics Information Use of Paper Documents Suspension of Use Right and Cancelation of Registration 46 CHAPTER THIRTEEN SIMPLIFIED CUSTOMS PROCEDURE 84 Authorized Persons Simplified Procedure for Goods Declaration Simplified Procedure for Clearance of Goods Self-assessment of Customs Duty and Tax Liabilities Audit Based Customs Control 48 PART FOUR DUTIES AND TAXES CHAPTER ONE DETERMINATION OF DUTIABLE VALUE 89 Principles Transaction Value Valuation of Identical Goods Valuation of Similar Goods Deductive Value Method Computed Value Method Fallback Method Costs to be Included in Transaction Value Charges not to be Included in Transaction Value Deduction from Transaction Value Production of Additional Information and Evidence Other Conditions in which Valuation Methods be Applicable Exchange Rate 55 CHAPTER TWO TARRIF CLASSIFICATION 102 Principles Binding Information Regarding Tariff Classification 55 CHAPTER THREE ORIGIN OF GOODS 104 Determination of Country of Origin Conditions not Considered when Determining Country of Origin Production of Documents 57 5

6 107 Origin making 108 Rules of Preferential Origin of Goods 57 CHAPTER FOUR PAYMENT OF CUSTOMS DUTIES, TAXES AND SERVICE CHARGES 109 Obligation to Pay Duties and Taxes Liability for Payment of Duties and Taxes Applicable Dates for Assessment and Payment of Duties and Taxes Assessment of Duties and Taxes on the Basis of Advance Information Correction of Errors Mode of Payment Service Charges 59 CHAPTER FIVE SECURITIES TO GUARANTEE PAYMENT OF DUTIES AND TAXES 116 Furnishing of Security Conditions for Requiring Security Form of Security Rights and Obligations Related to Security Amount of Security 60 CHAPTER SIX POST CLEARANCE AUDIT, DIFFERED PAYMENT AND REFUND OF DUTIES AND TAXES 121 Post-clearance Audit Deferred Payment Refund of Overcharged Duties and Taxes Refund of Duties and Taxes for Invalidated Goods Declaration Refund of Duties and Taxes for Deteriorated, Spoiled, Damaged, Destroyed, Pillaged or Short-landed Goods Remission of Duties and Taxes Recovery of Duties and Taxes Refunded or Remitted by Error Set off 63 CHAPTER SEVEN DUTY AND TAX EXEMPTIONS 129 Granting Duty and Tax Exemptions Duty and Tax Exempted Imports 64 PART FIVE OBLIGATIONS RELATED TO CUSTOMS OPERATIONS 131 Obligations of Carrier Obligations of Customs Warehouse Permit Holder Obligation to Provide Information 66

7 134 Retaining Information Duty to Cooperate 67 PART SIX CUSTOMS CONTROL AND LAW ENFORCEMENT CHAPTER ONE CUSTOMS CONTROL 136 Purpose of Customs Control Application of Customs Control Customs Control on Import, Export and Transit Goods Customs Border Control Customs Ports and Transit Routes Measures Taken Under Customs Control 69 CHAPTER TWO LAW ENFORCEMENT 142 Power to Search Power to Seize Goods and Means of Transport Powers to Open and Examine Postal Goods Release of Seized Goods and Means of Transport against Security Power to Examine and Seize Documents Forfeiture of Goods and Means of Transport Power to Impose and Execute Administrative Penalties Power to Investigate and Prosecute Customs Offence Decision not to Institute Criminal Charges Powers and Duties of the Ethiopian Federal Police Commission 74 CHAPTER THREE COMPLAINTS AND APPEALS 152 Establishment of Complaint Review Committees Powers and Duties of Complaint Review Committees Complaint Handling Procedures Appeal Procedures 76 PART SEVEN CUSTOMS OFFENCES AND PENALTIES CHAPTER ONE CUSTOMS OFFENCES AND ADMINISTRATIVE PENALTIES 156 Failure to Comply with Restrictions on Import and Export of Goods Causing Evasion or Understatement of Duties and Taxes Opening of Parcels and Removal of Marks Failure to Return Samples Failure to Comply with Obligations of Carrier Failure to Comply with Warehouse Permit Conditions 78 7

8 162 Failure to Observe Customs Transit Procedures Misuse of Duty Free Goods 164 Misuse of Temporarily Imported Goods 165 Other Offences 79 CHAPTER TWO CUSTOMS CRIMINAL OFFENCES AND PENALTIES 166 Abuse of Power Soliciting of Corrupt Practices Obstruction of Customs Control Falsifying and Counterfeiting Documents and Symbols Contraband Crime of Fraudulent Acts Committed under the Cover of Legally Declared Goods 172 Crime Committed by Opening of Parcels and Removal of Marks Criminal Offence by Carrier Unauthorized Use of Electronic Information Exchange System Punishment Applicable to Legal Persons Admissibility of Evidence PART EIGHT MISCELLANIOUS PROVISIONS 177 Establishment and Types of Customs Warehouses Customs Warehouse Permit Accessibility of Information Publication and Distribution of Customs Forms Rights of Customs Officer Power to Issue Regulations and Directives Repeal and the Applicability of other Laws Transitory Provisions Effective Date

9 Proclamation No. /2014 CUSTOMS PROCLAMATION WHEREAS it has become necessary to have an expedient and modern customs legal framework which encourages the development of manufacturing industries and investment in line with increasingly growing international trade; WHEREAS international, c++ontinental and regional trade agreements to which the country is a party require contemporary customs laws and procedures; WHEREAS strong system of law enforcement is required from time to time to prevent the increasing incidence of contraband and other commercial crimes which are resulting in negative impacts on legitimate trade, public security, government revenue and other social and economic development; NOW, THEREFORE, in accordance with Article 55(1) of the Constitution of the Federal Democratic Republic of Ethiopia, it is hereby proclaimed as follows: PART ONE GENERAL 1. Short Title This Proclamation may be cited as the Customs Proclamation No / Definitions In this Proclamation, unless the context otherwise requires: 1/ goods means any kind of corporeal chattels and other incorporeal chattels deemed to be corporeal chattels by law including natural forces and resources of an economic value which are employed in use, and includes money; 2/ cargo means any goods imported or exported by any means of transport other than stores of means of transport for commercial use and baggage of travellers; 3/ duty means a charge levied and collected on any imported or exported goods in accordance with the Customs Tariff Regulations issued pursuant to this Proclamation and the International Convention on the Harmonized Commodity Description and Coding System; 9

10 4/ tax means payment collected in accordance with the existing tax laws on imported and exported goods; 5/ importation means bringing or causing to be brought goods into the customs territory; 6/ exportation means taking or causing to be taken out goods from the customs territory; 7/ customs territory means the territory of Ethiopia; 8/ customs station means any place designated as customs office at the port of entry or exit of goods, transit routes or customs area for the control of import and export goods or for accomplishment of customs formalities and collection of duties and taxes; 9/ customs warehouse includes temporary customs storage, bonded customs warehouse and government customs warehouse; 10/ temporary customs storage means enclosed or open premises where: a) import goods are stored under customs control until they are released upon completion of customs formalities or they are transferred to bonded customs warehouse or government customs warehouse, as the case may be; and b) export and transit goods are stored under customs control until the completion of the applicable customs formalities or they are transferred to bonded customs warehouse or government customs warehouse, as the case may be, and includes dry ports; 11/ bonded customs warehouse means a warehouse under which goods are stored under customs control without payment of duties and taxes, and includes duty free shops and bonded factories; 12/ "bonded factory" means a factory which produces goods, under customs control, using raw materials and accessories acquired without payment of duty and taxes; 13/ "government customs warehouse" means a warehouse where goods seized or forfeited due to contravention of customs law as well as abandoned goods shall, be stored, while being under customs control, until they are sold or disposed otherwise; 14/ warehouse operator means a person who administers a customs ware house; 15/ means of transport means any means of conveyance used for carriage of goods and travellers on land, air or water, and includes animals, electricity transmission lines and pipes used to transport liquids;

11 16/ carrier means the person actually transporting goods or responsible for the operation and control of the means of transport; 17/ transit route means any route designated by the Authority for the movement of imported or exported goods under customs control; 18/ customs clearing agent means a person issued with customs clearing agent license pursuant to regulations issued here under and includes an employee of a declarant issued, by the Authority, with a certificate of professional competence in respect of customs clearance; 19/ transhipment means the customs procedure under which goods are transferred under customs control from the importing means of transport to the exporting means of transport within the area of one customs port which is the port of both importation and exportation; 20/ goods declaration means a statement made in accordance with the provisions of this Proclamation, by which the declarant indicate the customs procedure to be applied to import, export or transit goods and furnish the particulars which the Authority requires for its application; 21/ declarant means any person who makes a goods declaration or in whose name such a declaration is made; 22/ customs procedure means all customs operations which shall be carried out by the persons concerned and by the Authority in order to comply with customs law; 23/ electronic signature means a digital signature allowed to a registered user for authentication of electronic records in conformity with the requirements prescribed in this Proclamation and user agreement; 24/ non-commercial goods means goods that are intended for the personal or family use of the consignee or persons carrying them, or which are clearly intended as gifts and the aggregate value or quantity of which does not exceed the amounts laid down in directives issued by the Ministry; 25/ document means any document presented physically or by electronic means to the Authority to complete customs formalities; 26/ invoice means a document issued by a manufacturer or supplier which shows the price of goods; 27/ identical goods means goods which are the same in all respects including physical characteristics, quality, reputations and country of origin; 28/ similar goods means goods which, although not alike in all respects, have like characteristics, and component materials, perform the same functions and to be commercially interchangeable; and the quality, origin, reputation and the trade 11

12 mark of which are among the factors to be considered in determining their similarity; 29/ disposal of goods means transferring of goods through sale, donation or by any other means or the act of destroying goods by way of burning or otherwise; 30/ prohibited goods means goods of which the importation, exportation or transit is prohibited by Ethiopia law or international agreement ratified by Ethiopia; 31/ restricted goods means goods which the importation, exportation or transit is restricted unless it is permitted by the competent authority in accordance with legal procedures; 32/ cargo manifest means a document which indicate the consignor, consignee, mark, package number, quality, quantity, weight, cargo declaration number and other particulars of goods; 33/ compensating product means product manufactured, processed or repaired abroad or at home, as the case may be, by inward or outward processing; 34/ certificate of origin means a document issued by a competent authority in the exporting country certifying the authenticity of the origin of goods; 35/ rules of origin means a procedure and criteria put in place to determine the origin of goods in accordance with international, regional or bilateral trade agreements; 36/ container means a receptacle which is either flat or open or fully or partially enclosed for containing goods and suitable for repeated use, and specially designed to facilitate the carriage of goods by one or more mode of transport; 37/ customs transit means customs procedures under which goods are transported under customs control from one customs office to the other; 38/ customs control means any measure applied by the Authority to ensure compliance with customs law; 39/ customs law includes this Proclamation, regulations and directives issued hereunder and other laws enforced by the Authority; 40/ customs port means any place that is designated by the Authority for unloading, storage and loading of import, export and transit goods for the purpose of enforcing customs laws and includes dry port; 41/ examination of goods means the physical examination of goods by customs officer to satisfy that the origin, country of export, nature, condition, quality, quantity, tariff classification and value of the goods are in accordance with particulars furnished in the goods declaration and includes examination of goods on the basis of baggage declarations by travellers;

13 42/ duty free shop means a shop established, upon the authorization of the Authority, in international airports or, where necessary, in other places in which duty and tax free goods are sold to international travellers and other duty free privileged persons; 43/ customs crossing means a designated point of crossing of the customs boundary line for persons and means of transport as well as for import, export and transit goods, and includes international border traffic routes; 44/ customs frontier strip means a 15 kilometres wide part of the customs territory from the customs boundary line of Ethiopia; 45/ risk management means a system of management by which different risk bands are categorized on the basis of their risk levels in light of fair customs service provision and control with respect to goods brought to or taken out of customs territory; 46/ release of goods means a procedure whereby goods under customs control are released for the purposes declared; 47/ customs officer means an official or employee assigned to discharge customs operations and includes an investigation officer; 48/ seizure means taking possession of goods or documents in relation with enforcement of customs law; 49/ under the cover of legally declared goods means the act of intermingling of goods that are different in type, size, quantity, value or country of origin with the declared goods; 50/ "traveller" means a person: a) who is not a domiciliary of Ethiopia and who enters or leaves the territory of Ethiopia; or b) who is a domiciliary of Ethiopia and who leaves or returns to Ethiopia; 51/ abandoned goods means goods that are not collected by their owner within the period prescribed by law completing customs procedures; 52/ personal effects means articles which a traveller may require for his personal use and the aggregate value or quantity of which does not exceed the amounts laid down in directives issued by the Ministry; 53/ Ministry means the Ministry of Finance and Economic Development; 54/ Authority means the Ethiopian Revenues and Customs Authority; 55/ person means any natural or juridical person; 13

14 56/ Any expression in the masculine gender includes the feminine. 3. Scope of Application 1/ This Proclamation shall be applied in the entire territory of Ethiopia. 2/ Without prejudice to sub-article (1) of this Article, this Proclamation shall regulate import goods, export goods, goods in transit and any goods subject to customs control including rights and obligations of persons who takes part in customs formalities. 4. Prohibited or Restricted Imports and Exports 1/ No person may import, export or transit prohibited goods. 2/ No person may import, export or transit restricted goods unless in compliance with the requirements of the restriction. PART TWO PRINCIPLES OF CUSTOMS OPERATIONS 5. General The customs operations shall: 1/ promote a self-assessment system whereby importers and exporters present the value of goods and pay duties and taxes by themselves; 2/ be based on the principles of risk management, transparency and accountability and create a conducive environment to provide equitable, expeditious, predictable and reliable services in the exercise of customs control; 3/ promote and support manufacturing industry and economic development; 4/ provide clear information to the customers and be based on the use of internationally accepted information technology systems through which information is gathered, analysed, used and stored in the course of cooperation and consultation among concerned bodies; 5/ prevent illegal practices by promoting self-compliance.

15 6. Risk Management 1/ The customs facilitation service and control shall classify the risk level of import, export and transit goods and be carried out with striking balance between facilitation and control which shall be based on a criteria substantiated by information. 2/ Activities performed and decisions passed by the Authority with respect to release of goods, control, compliance management and facilitation shall take the principles of risk management into account. 3/ The Authority may employ audit based control and other methods of control to take appropriate measures on such irregularities identified after decision on facilitation is provided in accordance with principles of risk management. 4/ The Authority shall issue directives regarding the risk level of import, export and transit goods. 7. Customs Approved Treatment or Use of Goods 1/ Customs approved treatment or use of goods shall be applied in accordance with standards prescribed by this proclamation without any discrimination as to the nature, quantity, origin, and destination or shipment conditions of the goods. 2/ Sub-article (1) of this Article may not be applicable if such application is contrary to any measure taken for the protection of public morality, the protection of health and life of humans, animals or plants, the protection of historical and cultural heritages, or other specific treatment or use of goods provided by law. PART THREE CUSOTMS PROCEDURE CHAPTER ONE GOODS DECLARATION 8. Declarant 1/ Any person having the right to dispose of the goods shall be entitled to act as declarant, and shall be entitled to be represented by a customs clearing agent. 2/ The declarant shall be held responsible for the completeness and accuracy of the particulars given in the goods declaration and the payment of the duties and taxes. 15

16 3/ Before lodging the goods declaration the declarant shall be allowed, under such conditions as may be laid down in a directive issued by the Authority, to inspect the goods and to draw samples. 4/ A separate goods declaration shall not be required in respect of samples allowed to be drawn, provided that such samples are included in the goods declaration concerning the relevant consignment. 9. Forms of Goods Declaration 1/ Goods declaration may be made in writing form, orally, by bodily action or electronically. 2/ Goods declaration to be presented in written form and electronically shall be filled and signed in the form prescribed by the Authority and shall contain the particulars only necessary for completing customs formalities. 10. Supporting Documents of Goods Declaration 1/ On the presentation of goods declaration made in written or electronic form, original copies of the following supporting documents or electronic copies shall be submitted as required by the Authority: a) transportation document; b) invoice; c) bank permit; d) packing list; e) certificate of origin; and f) other documents necessary to ensure compliance with customs laws and prescribed by directives issued by the Authority. 2/ Where there are adequate reasons, the Authority may accept only copies of the supporting documents listed under sub article (1) of this Article. 3/ Transportation documents that are required in support of export goods shall be a document that is used as evidence for the cost of transportation of goods up to the customs port of exit. 4/ Where supporting documents cannot be presented to customs on time for adequate reasons, the Authority may, upon requiring a guarantee, allow the documents to be presented within a specified time after providing the service.

17 5/ Supporting documents and goods declaration shall constitute a single indivisible legal instrument upon acceptance of the declaration. 6/ The Authority may require any supporting document presented in a foreign language to be translated into Amharic or into English by an official translator. 11. Allowing Provisional Goods Declaration 1/ Where, for reasons deemed valid by the Authority, the declarant does not have all the information required to make the goods declaration, a provisional goods declaration shall be allowed to be lodged, provided that it contains the particulars deemed necessary by the Authority for the assessment of customs duties and that the declarant undertakes to produce final goods declaration within a specified period. 2/ If the Authority allows the presentation of a provisional goods declaration, the tariff treatment to be accorded to the goods shall not be different from that which would have been accorded had a complete and correct goods declaration been lodged in the first instance. 3/ The Authority shall issue directives for the proper application of the provisions of this Article. 12. Goods Subject to Goods Declaration 1/ Any import, export or transit goods shall be subject to goods declaration. 2/ Any goods in respect of which goods declaration is presented shall, in the declaration, be identified as: a) dutiable or duty free, if entered for home use or under duty draw back import regime; b) out right export or temporary export, if entered for export; c) imported for inward processing and whether there is duty draw back; d) exported for outward processing and whether the import is for home use or whether there is duty draw back; or e) temporarily imported without payment of duties and taxes. 3/ The Authority may, by directive, allow certain goods to complete customs formalities without lodging goods declaration in written form or electronically depending on their nature or use. 17

18 13. Acceptance of Goods Declaration 1/ A goods declaration shall be deemed to be accepted when the declaration and supporting documents enumerated under sub-article (1) of Article 10 of this Proclamation has been registered in the customs database and verified by the Authority for completeness and accuracy. 2/ Verification of goods declaration shall be effected immediately after its presentation. 3/ Any error that makes goods declaration or supporting documents incompelete or defective shall be rectified by the declarant before having the goods declaration registered. 4/ Notwithstanding the provision of sub-article (3) of this Article errors committed, after presentation of goods declaration, with fraudulent intent or gross negligence shall entail penalty in accordance with this Proclamation. 5/ When the Authority rejects the goods declaration, it shall state the reasons to the declarant in writing. 14. Amendment of Declaration 1/ The declarant may amend one or more of the particulars of a goods declaration already presented; provided, however, that such amendment may not have the effect of rendering the declaration applicable to goods other than those originally declared. 2/ Notwithstanding the provisions of sub article (1) of this Article, any amendment may not be made, unless authorized by the Authority for good cause, after the Authority has informed the declarant that it intends to examine the documents or goods or it has established that the particulars are incorrect. 15. Cancellation of Declaration 1/ Where the declarant fails to proceed with the customs formalities within seven days after the presentation of a goods declaration or after completion of the preparation of an assessment notice, the goods declaration may be cancelled. 2/ Goods declaration may be cancelled upon the request of the declarant, where it is proved that the declaration has been presented contrary to provisions of this proclamation or any appropriate customs procedure and payment has not yet been effected.

19 3/ Notwithstanding the provisions of sub-article (2) of this Article, the request for cancellation may not be permitted after release of the goods. 4/ The Authority may allow cancellation of the goods declaration on good cause prior to the payment of the duty and tax. 5/ Allowing the cancellation of goods declaration pursuant to this Article shall not exonerate the declarant from a penalty that may be imposed in accordance with this Proclamation. CHAPTER TWO CUSTOMS TRANSIT AND TRANSHIPMENT 16. General 1/ The Authority shall allow goods to be transported under customs control in the customs territory: a) from a customs station of entry to a customs station of exit; b) from a customs station of entry to an inland customs station; c) from an inland customs station to a customs station of exit; and d) from one inland customs stations to another inland customs station. 2/ Goods being carried under customs transit shall not be subject to the payment of duties and taxes, provided the conditions laid down by the Authority are complied with and that any security required has been furnished. 3/ The declarant and the carrier shall jointly and severally be responsible for ensuring that the goods are produced intact at the customs station of destination in accordance with the conditions imposed by the Authority. 4/ Notwithstanding the provisions of sub-article (1) of this Article, the Authority may, when it is satisfied that the conditions laid down by its directives are met, authorize: a) a consignee to receive goods directly at his premises without having to present them at the customs station of destination; or b) a consignor to send goods directly from his premises without having to present them at the customs station of departure. 19

20 17. Goods Declaration for Customs Transit Notwithstanding the provisions sub-article (1) of Article 12 of this Proclamation, any commercial or transport document setting out clearly the necessary particulars may be accepted as the descriptive part of the goods declaration for customs transit and such acceptance shall be noted on the document. 18. Sealing and Identification of Consignments 1/ The customs station of departure shall take all necessary action to enable the customs station of destination to identify the consignment and to detect any unauthorized interference. 2/ When a consignment is conveyed in a transport-unit and customs sealing is required, the customs seals shall be affixed to the transport-unit itself provided that the transport-unit is so constructed and equipped that: a) customs seals can be simply and effectively affixed to it; b) no goods can be removed from or introduced into the sealed part of the transport-unit without leaving visible traces of tampering or without breaking the customs seal; c) it contains no concealed spaces where goods may be hidden; and d) all spaces capable of holding goods are readily accessible for customs inspection. 3/ The Authority may decide whether a transport-unit is secure for the purposes of customs transit. 4/ Where the accompanying documents make it possible unequivocally to identify the goods, such goods may be transported without a customs seal or fastening unless: a) the customs station considers it necessary in the light of risk management; b) it is require to facilitate the customs transit operation as a whole; or c) an international agreement so provides. 5/ If a consignment is, in principle, to be conveyed under customs seal and the transport-unit cannot be effectively sealed, identification shall be assured and unauthorized interference rendered readily detectable by: a) full examination of the goods and recording the results thereof on the transit document; b) affixing customs seals or fastenings to individual packages; c) a precise description of the goods by reference to samples, plans, sketches, photographs, or similar means, to be attached to the transit document; d) stipulation of a strict routing and strict time limits; or

21 e) customs escort. 6/ When the Authority fix a time limit for customs transit under paragraph (d) of sub-article (5) of this Article, it shall be sufficient for the purposes of the transit operation. Such time limit may be extended at the request of the declarant or the carrier, and for reasons deemed valid by the Authority. 7/ The Authority shall require goods to follow a prescribed itinerary or to be transported under customs escort in accordance with paragraph (d) or (e) of subarticle (5) of this Article only when it considers such a measure to be indispensable for the purpose of customs control. 8/ The decision to waive sealing of a transport-unit under this Article shall be the prerogative of the Authority alone. 19. Customs Seals 1/ Customs seals and fastenings used in the application of customs transit shall fulfill the requirements stipulated by directives of the Authority. 2/ Customs seals and identification marks affixed by foreign customs shall be accepted for the purposes of the customs transit operation unless: a) they are considered not to be sufficient; b) they are not secure; or c) the Authority proceed to an examination of the goods. 3/ When foreign customs seals and fastenings have been accepted pursuant to subarticle (2) of this Article, they shall be afforded the same legal protection as customs seals and fastenings used by the Authority. 20. Procedures En Route 1/ A change in the customs station of destination shall be accepted without prior notification except where the Authority have specified that prior approval is necessary. 2/ Transfer of goods from one means of transport to another shall be allowed without authorization by the Authority, provided that any customs seals or fastenings are not broken or interfered with. 3/ The Authority may allow goods to be transported under customs transit in a transport-unit carrying other goods at the same time, provided that it is satisfied that the goods under customs transit can be identified and the other customs requirements shall be met. 4/ The declarant or the carrier shall report accidents or other unforeseen events directly affecting the customs transit operation promptly to the nearest customs station or other appropriate government body. 21

22 21. Termination of Customs Transit 1/ For the purpose of termination of a customs transit operation, the goods and the relevant goods declaration shall be presented to the customs station of destination within the time limit fixed, without the goods having undergone any change and without having been used, and with customs seals, fastenings or identification marks intact. 2/ The customs station of destination shall, as soon as the goods are placed under its control, arrange without delay for the termination of the customs transit operation after having satisfied itself that all conditions have been met. 3/ If goods on transit are not presented to the customs station of destination within the prescribed time limit for reasons not specified in the directive to be issued by the Authority the guarantee shall be forfeited to the government. 22. Transshipment 1/ Transshipment of goods may be allowed upon request submitted by the importer, carrier or by the customs agent. 2/ Any commercial or transport document setting out clearly the necessary particulars shall be accepted as the goods declaration for the application of this Article. 3/ When the Authority considers it necessary, it shall take precautionary measure at importation to ensure that the goods to be transhipped shall be identifiable at exportation and that unauthorized interference shall be readily detectable. 4/ The Authority may fix a sufficient time limit for the exportation of goods declared for transhipment. 5/ Goods admitted to transshipment shall not be subject to the payment of duties and taxes. CHAPTER THREE CUSTOMS PROCEDURES FOR CLEARANCE OF GOODS 23. Examination of Documents and Goods 1/ The Authority may, to ensure that goods to be released are covered by a registered declaration, examine the goods and take samples for examination and analysis. 2/ The declarant shall be entitled to be present when the goods are examined or samples are taken; provided, however, that if he fails to appear, the Authority shall proceed to conduct the examination or to take the samples in the presence of the warehouse operator.

23 3/ The cost of transport of the goods to the place where they are examined or samples are taken, the cost of taking samples and the cost of examination as well as any expense related thereto shall be borne by the declarant. 4/ The Authority shall not be liable for payment of any compensation to the declarant for samples taken in compliance with customs law. 5/ Where only parts of the goods covered by the goods declaration are examined the result of such examination shall apply to all goods indicated by the declaration. 6/ Where the declarant considers that the result or partial examination is not valid as regards the remainder of the goods, he may request further examination of the goods and shall cover the expenses incurred by such examination. 7/ Where the goods declaration is not made subject to verification, the customs formalities shall be applied based on the particulars stated in the declarations. 8/ Goods that meet the conditions specified in the directive issued by the Authority may be given priority in undergoing customs procedure. 24. Placing of Identification Marks on the Goods 1/ The Authority shall place identification mark on the goods where identification is required in order to ensure compliance with the procedure for which the goods have been declared. 2/ The identification mark affixed to the goods or the means of transport shall be removed or destroyed only by the Authority or by a person authorized by the Authority except in the case of force majeure, where their removal or destruction is essential to ensure the protection of the goods or means of transport. 25. Release of Goods 1/ Goods declare shall be released as soon as they are examined by the Authority or the Authority decided not to examine them, provided that: a) they are not subject to prohibition or an offence is committed in relation to them; b) where the conditions of placing the goods under the customs procedure in question are fulfilled; c) in the case of restricted goods, the permit issued by the appropriate body pursuant to the relevant law is presented; and d) any applicable duties and taxes have been paid or security is furnished. 23

24 2/ The Authority may, in accordance with a directive issued by the Ministry, release goods upon receiving a guarantee from the importer to secure payment of the taxes and duties within a certain period of time; provided, however, that the period of such deferred payment may not exceed 12 months. 3/ Where samples are taken and technical documents and expert advice is required to determine taxes and duties, the Authority may release the goods with security before the results of such examination are known. 4/ All the goods covered by a declaration shall be released at the same time unless the condition requires otherwise. 26. Replacement and Compensatory Goods 1/ Goods imported for home use may be allowed to be re-exported and replaced within one year from the date of importation without additional payment of duties and taxes upon the request of the importer if they are incompatible to their intended purpose due to defect, error of consignment or their incompleteness. 2/ Notwithstanding the provisions of sub-article (1) of this Article, if the Authority is convinced that the goods found to be incompatible to their intended purpose due to defect, error of consignment or their incompleteness cannot be re-exported before the replacement goods are imported, it may allow the importation of the replacement goods without payment of duties and taxes upon submission of a guarantee for the re-export of the goods within a certain period of time or, if such goods cannot be used for any other purpose, after their delivery to the Authority. 3/ Where it is ascertained by sufficient evidence that goods imported for home use are less than the quantity stated in the goods declaration, the Authority may allow the remaining goods to be imported or refund the amount of tax and duties paid on the remaining goods. 27. Release of Goods for Free Circulation 1/ Unless otherwise provided by law, any goods may not be released before the payment of duties and taxes. 2/ Any imported goods that have completed the necessary customs formalities and released for free circulation shall be considered as domestic goods. 3/ Goods released for free circulation shall lose the status of domestic goods where: a) the goods declaration for their release for free circulation is invalidated;

25 b) they are imported for inward processing and treated under the duty draw back or voucher scheme; c) they have to be re-exported in accordance with the terms of the contract due to the fact that they are defective or fail to meet the required standards; or d) they are re-exported or used only for the permitted purpose and subject to drawback system. 28. Pre-arrival Clearance 1/ The importer or his agent may lodge his declaration with supporting documents prior to the arrival of the goods and may request for a pre-arrival clearance to be issued upon examination of the declaration and supporting documents. 2/ The Authority may examine the declaration and supporting documents presented to it prior to the arrival of the goods and issue release of goods right upon their arrival. 29. Clearance Subsequent to Release of Goods The Authority may release goods prior to the completion of customs formalities if it is satisfied that the declarant can subsequently accomplish all the custom formalities; provided, however, that the declarant produces a commercial or official document containing the main particulars of the consignment concerned and acceptable to the Authority, and that security, where required, has been furnished to ensure collection of any applicable duties and taxes. CHAPTER FOUR CUSTOMS PROCEDURE FOR TRAVELERS 30. Goods Declaration by Travelers 1/ A traveler may be permitted to make an oral declaration in respect of the goods carried by him; provided, however, that a written or electronic declaration shall be required for goods carried by a traveler which constitute an importation or exportation of a commercial nature. 2/ A traveler on arrival may be allowed to make a declaration by choosing between the following types of channel: 25

26 a) a channel, identified by green symbol, that is for the use of travelers carrying goods in quantities or values not exceeding those admissible dutyfree and which are not subject to import prohibitions or restrictions; or b) a channel, identified by red symbol, that is for the use of travelers carrying goods in quantities or values exceeding those admissible duty-free or which are subject to import prohibitions or restrictions; 3/ The Authority, in co-operation with other relevant bodies, may use internationally standardized advance passenger information, where available, in order to facilitate the customs control of travelers and the clearance of goods carried by them. 31. Storage of Goods Carried by Travelers Goods carried by travelers shall be stored, subject to the conditions prescribed by the Authority, pending clearance under the appropriate customs procedure, re-exportation or other disposal in accordance with this Proclamation: 1/ at the traveler's request; 2/ when the goods concerned cannot be cleared immediately; or 3/ where the other provisions of this Chapter do not apply to such goods. 32. Unaccompanied Baggage 1/ A baggage arriving or leaving before or after the traveler shall be cleared under the procedure applicable to accompanied baggage or under another simplified customs procedure. 2/ Any authorized person shall be allowed to present unaccompanied baggage for clearance on behalf of the traveler. 33. Non-commercial Goods and Personal Effects 1/ Notwithstanding any provision to the contrary under Part Four of this Proclamation, a system of flat-rate assessment of duties and taxes may, where appropriate, be applied to non-commercial goods imported or exported by travelers. 2/ Travelers shall be allowed to import or export personal effects free of duties and taxes. 3/ Returning residents shall be permitted to re-import free of duties and taxes personal effects which they took with them at the time of their departure and which were in free circulation in the customs territory.

27 4/ Where it is necessary to lodge a temporary admission declaration for nonresidents' personal effects, the Authority may fix the time limit for the reexportation of such personal effects by reference to the length of the traveler's stay in the customs territory. 5/ The Authority may, at the request of the traveler on the basis of valid reasons, may extend the time limit fixed pursuant to sub-article (4) of this Article. 6/ The conditions under which travelers entering or leaving the customs territory may use their private means of transport shall be determined by directives to be issued by the Authority. 7/ A non-resident traveler may re-export temporarily admitted personal effects through a customs port other than that through which they were imported. 8/ The Authority shall not require the re-exportation of personal effects of a nonresident traveler which have been destroyed or seriously damaged due to accident or force majeure. 34. Transit Travelers Transit travelers who do not leave the transit area shall not be required to pass through any customs control; provided, however, that the Authority may maintain general surveillance of transit areas and take any action necessary when a customs offence is suspected. 35. Information Concerning the Customs Facilities Applicable to Travelers The Authority shall make available, through the appropriate means, information concerning the customs facilities applicable to travelers in the Amharic and English languages. CHAPTER FIVE CUSTOMS PROCEDURE FOR IMPORTATION AND EXPORTATION OF GOODS THROUGH THE POSTAL SYSTEM 36. Customs Control Goods imported or exported through the postal system shall be subject to customs control. 37. Duty to Report Any person authorized to provide postal services shall report by means of a manifest or in any other approved manner, all goods arriving or departing through the postal system and shall present such goods to a customs officer for clearance. 27

28 38. Postal Goods Declaration 1/ Where any form completed by the sender, label affixed or supporting documents produced in respect of goods imported or to be exported through the postal system shows that: a) the goods have a value not exceeding the value determined by the Authority; b) importation or exportation of the goods doesn't require certification; and c) the imported goods do not require to be placed under a different procedure other than the customs procedure applicable to goods for home use; such form, label or supporting documents shall be considered as an acceptable declaration for the purpose of customs formalities. 2/ A separate goods declaration shall be required for goods imported or to be exported through the postal system and are not covered by the provisions of subarticle (1) of this Article. 39. Delegation The Authority may delegate postal service providers to collect duties and taxes on goods imported and exported through the postal system. CHAPTER SIX CUSTOMS PROCEDURE APPLICABLE TO MEANS OF TRANSPORT FOR COMMERCIAL USE AND STORES 40. Temporary Admission of Means of Transport for Commercial Use 1/ Any means of transport for commercial use, whether loaded or not, shall be allowed to be brought temporarily into the customs territory relieved from payment of duties and taxes, provided that: a) it is not used for internal transport in the customs territory; and b) it is intended for re-exportation without having undergone any change except normal depreciation due to its use, normal consumption of lubricants and fuel and necessary repairs. 2/ The Authority may require security for temporary admission of means of transport for commercial use duly registered abroad when it considers it essential for the purposes of customs control.

29 3/ The Authority may fix a time limit for the re-exportation of means of transport for commercial use, taking into account all the circumstances of the transport operations intended. 4/ The Authority may, at the request of the person concerned and for reasons deemed valid, extend the period fixed pursuant to sub-article (3) of this Article Temporary Admission of Parts and Equipment 1/ Special equipment for the loading, unloading, handling or protection of cargo, whether or not it is capable of being used separately from the means of transport for commercial use, which is imported with the means of transport for commercial use and is intended to be re-exported therewith, shall be allowed to be brought temporarily into the customs territory relieved from payment of import duties and taxes. 2/ Parts and equipment which are to be used, in the course of repair or maintenance, as replacements for parts and equipment incorporated in or used on a means of transport for commercial use already temporarily imported into the customs territory, shall be allowed to be brought temporarily into the customs territory relieved from payment of duties and taxes; provided, however, that the importer shall re-export or handover the replaced part to the Authority. Declaration of Arrival The Authority may require the lodging of a declaration of arrival of a means of transport for commercial use containing the particulars necessary to ensure compliance with the customs law. Customs Procedures for Departure 1/ Customs procedures applicable upon the departure of means of transport for commercial use may, as appropriate, include: a) the lodging of a declaration of departure with the Authority; b) the affixing of customs seals; c) the designation of a specified customs route; and d) the taking of measures for monitoring unauthorized delay in the departure. 2/ A means of transport for commercial use shall also be permitted to depart from the customs territory through a customs station other than that through which it arrived. 44. Stores on Board Arriving Aircraft or Train 1/ stores for consumption by the passengers and the crew of an aircraft or train arriving in the customs territory or stores necessary for the operation and 29